I’ve just totted up my invested portfolio’s returns in September. The bad news: I’m down 1.1%. The good news: the markets I’m in fell 1.6% on a weighted average basis.
I’ve plotted below the returns of each of my major asset types (geography vs equity/fixed income) for September. Equities fell by 2-3% in UK/International/Australia – though not in the USA. Half my portfolio is UK Equities, where the market fell by almost 3% this month. Fixed Income assets were generally up – a classic case of uncorrelated behaviour between equities and bonds – which helped my overall portfolio return significantly. If I’d had purely passive exposure I’d have had the weighted average return of about -1.6% for the month.
In this context my actual return of -1.1% is fine by me. I’m not sure that my outperformance is luck, my genius, or my market benchmarking not fully allowing for dividends – of which my portfolio received a bunch in September as it is the quarterly payout month for both iShares and Vanguard.
As ever, I’m buying – trying where possible to rebalance to USA Equity which remains below its target allocation.
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